Dividend Adjustment of TCS Full Details: TCS Announces ₹ 75 Dividend per Share

Get all the details on the Dividend Adjustment of TCS, including the date of ex-dividend, record date, cash, and F&O adjustments, and more. Learn how TCS’s dividends will be adjusted in line with SEBI guidelines.

On January 09, 2023, TATA CONSULTANCY SERVICES (TCS) announced that its Board of Directors has approved a third Interim Dividend of ₹ 8 per equity share and a special dividend of ₹ 67 per equity share, representing a total dividend of ₹ 75 per equity share. This is equivalent to a payout of 2.34% of the share price, based on the closing price of ₹ 3211.55 on January 06, 2023. The Ex-date for dividend is January 16, 2023, and the record date for the payment of dividends is January 17, 2023.

Dividend adjustment of TCS

SEBI’s Guidelines for Dividend Adjustment in F&O

SEBI guidelines state that companies whose dividends are more than 2% of the closing price on the day before the date of declaration of dividends must adjust the dividends in the futures and options market. In line with these guidelines, TCS dividends will be adjusted in the futures and options market as well as in the cash market.

Dividend Adjustment of TCS in the Cash Market

In the cash market, the last cum-dividend date for TCS is January 13, 2023. Investors who purchase TCS shares on or before this date will receive the dividends directly in their bank accounts.

Dividend Adjustment of TCS the Futures Segment

In the futures market, the value of a TCS futures contract will be adjusted by deducting the dividend amount from the closing price on January 13, 2023. For example, if TCS closes at ₹ 3400 on January 13, 2023, the value of a future contract will be ₹ 3400 x 175 = ₹ 5,95,000. On January 16, 2023, the value of the same contract will be ₹ 3325 x 175 = ₹ 5,81,875. The difference between these two values will be credited to the future buyer’s account and debited from the future seller’s account.

Dividend Adjustment of TCS in the Options Market

In the options market, the dividend amount will be deducted from the strike price (call/put) of the option for ongoing months contracts. This applies to the contracts expiring on January 25, 2023, February 23, 2023, and March 29, 2023. This can be understood through the table given below:

TCS Dividend Adjustment in Options

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